The Financial Services Authority’s latest thematic review has called for lenders to take a greater interest in the firms they deal with to crack down on fraud.
It has announced that rather than relying on FSA approval as a guide to a firm’s compliance, lenders must undertake due diligence of the companies they accept mortgage business from.
Many lenders can’t carry out a thorough review of the firms they deal with due to a lack of resources and information on what they need to look out for.
Moreover, lenders have different views on what is required so there is no ’one size fits all’ product that reviews firms and advisers. This still leaves lenders with a great deal of legwork to do.
Based on feedback from lenders, Bankhall has launched Mortgage Future – a mortgage-focussed package that does a risk review of firms, providing brokers with specialist compliance knowledge so they can keep in line with the regulator’s call for greater scrutiny.
The FSA’s intensive approach to cracking down on fraud is sorely needed.
Mortgage Future enables directly authorised firms to use a tailor-made service so they can demonstrate to lenders that their actions continue to comply with FSA standards.